What does the installment refund option guarantee?

The installment refund option guarantees continued payments to beneficiaries if the annuitant dies early. This option provides a safety net for the beneficiaries by ensuring that at least the total amount of the premiums paid into the annuity is returned, either through ongoing payments or as a lump sum, depending on the policy terms.

In practical terms, if the annuitant passes away before receiving payments equal to the total premiums that were paid, the remaining funds are distributed to the designated beneficiaries in the form of regular installments until that total is reached. This ensures that the annuitant’s contribution doesn't go entirely to waste and provides some financial security to the heirs.

The other options focus on outcomes that do not align with the unique benefits of the installment refund feature, such as lump sum payments or benefits exclusive to the annuitant alone, which does not fulfill the installment refund's purpose of protecting beneficiaries.